Union Station fully leased, a milestone in its revival

May 10, 2012|Kevin Collison, Kansas City Star

Union Station has leased 100 percent of its available office space after signing two tenants this week, culminating a steady financial comeback from the dour years when its civic reputation was sullied in red ink.

While the new leases themselves were small -- Integrity Computer Services is taking 660 square feet and the Frontier School System 1,788 square feet -- they cap a two-year campaign to squeeze more rental income from the 86,000 square feet of leasable office space in the historic train station.

The grand structure on West Pershing Road was restored in 1999 after area voters approved an unprecedented bistate sales tax. But the poor financial performance of the station and its Science City annex overshadowed that accomplishment, leaving many people skeptical about future bistate endeavors.

Through a combination of pushing leasing opportunities, including the renovation and reuse of several satellite buildings; cost-cutting measures and bringing in popular attractions, Union Station is not only pays its operating bills these days but generates enough revenues to improve its facilities and offerings.

"It's extremely gratifying to see we've totally leased out all the space in Union Station," Mike Haverty, chairman of the Union Station board, said Wednesday. "When you take that and couple it with the exhibitions and the success of the restaurants and Science City being updated, it's all gratifying.

"The final leasing of that space is like putting the cherry on top of the cake," Haverty said. "A lot of people had a lot to do with it."

Integrity Computer Services, a five-employee firm that provides information technology support to businesses, and Frontier, a math and science charter school that will have its administrative offices in Union Station, are the latest in a series of organizations that have leased space in Union Station in the last few years.

The Greater Kansas City Chamber of Commerce and the Kansas City Area Development Council moved their offices to the station at the end of 2010, taking a total of 36,000 square feet. Other major office tenants include the Kansas City Board of Election Commissioners, the University of Missouri-Kansas City and the Life Sciences Institute.

Another 25,687 square feet of retail space has been leased, along with a 9,000 square-foot post office branch.

Besides filling space in the main terminal, the National Archives Central Plains Region and a U.S. Postal Service distribution facility are now housed in the former Adams Dairy annex. The Todd Bolender Center for Dance & Creativity opened last year in a former power plant that served the station.

"All of a sudden, it's come together," Haverty said. "There are things we can do to improve, but comparing where we are today to three years ago is night and day."

Union Station officials also were pleased that the latest tenants add to the building's science and technology theme.

"We are honored that both of these organizations have selected Union Station as the place for administrative offices," said George Guastello, the president and CEO of Union Station Kansas City. "But more importantly, we are excited about the partnerships that will be created with our growing science center and our focus on our community's young people and commitment to science and technology education."